(1) Grazing land productivity values for each year of the reappraisal cycle beginning January 1, 2015, are:

(a) Calculated by using the formula defined in 15-7-201, MCA, where the agricultural land productivity valuation formula is:

(i) V = I/R;

(ii) V is the productivity value of the agricultural land;

(iii) I is the net income attributed to the acre of land using an adjusted average private grazing lease rate; and

(iv) R is the capitalization rate or the rate that converts an ongoing income stream into an estimate of value.

(b) For the reappraisal cycle beginning January 1, 2015, the per acre grazing land value is calculated by:

(i) multiplying the average private grazing lease per Animal Unit Month (AUM) by 25 percent to determine the landlord's share of expenses;

(ii) subtracting the landlord's share of expenses from the average private grazing lease per AUM to determine the adjusted gross income per AUM;

(iii) multiplying the adjusted gross income per AUM by the productivity of the grazing land expressed as AUMs per acre to determine net income; and

(iv) dividing the net income by the cap rate identified in 15-7-211, MCA.